The factors contributing to the soaring cost of college in US

January 4, 2012

Exploring the "higher-education bubble," the Village Voice reports that the biggest single factor driving costs upward for both public and private PSE institutions in the US is the cost of employee health benefits. At the same time, colleges are providing a lot of services they didn't used to, and more lavish facilities are also a factor. Since 2002, average public-college tuition has continued to rise faster than for private institutions due to state funding cuts, resulting in colleges relying on tuition to pay more than half their costs for the first time in history, according to estimates from the Delta Project on Postsecondary Education Costs, Productivity, and Accountability. So far there is no sign of the bubble bursting. College Board figures show US undergraduate enrolment rose by 2.8 million from 2007 to 2010, with most of the growth at public colleges. "As people say it gets more and more unaffordable, the fact is more and more people are affording it," says a College Board researcher. Village Voice